| 06 December 2011
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An Shelf Corp is a company or corporation that has had no activity. It was put on the "shelf" to "age". The company can then be sold to a person or group of persons who wish to start a company without going through all the procedures of creating a new one., and can be used as a Fast-Track Solution to Corporate Credit and Financing.
Shelf Corps are corporations or LLC's that have been formed in past years by American Incorporators Ltd., but have never been used. Each of these shelf corps was filed by American Incorporators Ltd. for the specific purpose of being a shelf company and all companies have had the annual franchise taxes and/or annual reports paid and filed with the Florida Secretary of State upon acquisition. All companies will be in Good Standing with the state of Florida.
Unforeseen liabilities can surface after a contract has been signed with your business. The "promoter" can be held personally liable for the financial obligations of a contract. It is possible to acquire and use the shelf corp to adopt that liability and relieve the promoter from it. This strategy should only be attempted with the assistance of an attorney.
Running your business through aged shelf corps reduces the risk involved in the view of your lenders when they decide to grant you credit. This is because, newly started business have only 50 percent success rate and the rest 50 percent of the businesses tend to witness failure in the first year. Under such circumstances, the fact that your company is a few years old will help in reducing the liability significantly from the lender's point of view. You could also gain benefits in terms of credit limit offered and the rate of interest of your repayment depending upon how old and stable your business is.
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